Company registration number 11305604 (England and Wales)
WEST NORFOLK PROPERTY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
WEST NORFOLK PROPERTY LIMITED
COMPANY INFORMATION
Directors
D Hall
Mr H Bhondi
(Appointed 11 July 2023)
Ms A Ware
(Appointed 11 July 2023)
Company number
11305604
Registered office
King's Court
Chapel Street
King's Lynn
PE30 1EX
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
King's Court
Chapel Street
King's Lynn
PE30 1EX
WEST NORFOLK PROPERTY LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18
WEST NORFOLK PROPERTY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company are that of the letting of residential properties to individuals in the King's Lynn and West Norfolk area.

Results and dividends

The results for the year are set out on page 6.

 

As a Local Authority owned company, the directors of West Norfolk Property Ltd feel that it is appropriate to add further explanation around the profit before taxation, as detailed on the Statement of Comprehensive Income (Page 6).

The financial impact of day to day operations of the company has been mixed this year. Rental income generated has increased significantly to £369,746 (2022: £265,954), whilst gross profit has fallen to £18,696 (2022: £49,874), largely as a result of increased management costs now that the number of properties within the company's portfolio has increased to 45, from 27 last year.

West Norfolk Property Ltd lease their housing stock assets from BCKLWN which has impacted the total cost of sales. This is due to properties incurring full year lease payments, as well as new properties being onboarded in the year. Cost of sales has increased to £351,050 (2022: £216,080). Administration expenses have however fallen in the year ended 31 March 2023 as a number of properties were purchased last year resulting in high legal costs.

As previously stated, West Norfolk Property Ltd currently lease their housing stock assets from BCKLWN, however, appropriate work is being undertaken to facilitate the purchase of the properties. Due to this lease arrangement, a Right of Use asset is recognised under IFRS16.

The corresponding accounting treatment of the Right of Use asset has contributed to the profit generated by the company this year of £249,609 for the year ended 31 March 2023.

Finance costs: c£36k (See note 5 page 13)

Fair value adjustment: c£299,254 (See note 6 page 13)

As the leases for the properties are short term (4 years), and some of the leases are in their final years, the impact of the Right of Use asset unwinding is having a much greater impact on the financial statements.

As West Norfolk Property Ltd does not legally own the properties, any capital appreciation on the properties cannot be accounted for on the company balance sheet.

The directors are working towards finalising a loan facility to purchase the housing stock. Once purchased, this will eliminate the Right of Use asset and the corresponding accounting adjustments, the housing stock will be capitalised within West Norfolk Property Ltd and revalued on a yearly basis, allowing for capital appreciation to be recognised.

One of the company’s key objectives is to return a profit to BCKLWN. The directors still deem this objective appropriate, and directors envisage future financial statements will represent this.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

WEST NORFOLK PROPERTY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R P Blunt
(Resigned 28 June 2023)
D Hall
R N Harding
(Resigned 11 September 2023)
A J Lawrence
(Resigned 4 July 2023)
Mr B W C Long
(Resigned 15 November 2022)
Mr H Bhondi
(Appointed 11 July 2023)
Ms A Ware
(Appointed 11 July 2023)
Auditor

Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
D Hall
Director
15 March 2024
WEST NORFOLK PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WEST NORFOLK PROPERTY LIMITED
- 3 -
Opinion

We have audited the financial statements of West Norfolk Property Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

WEST NORFOLK PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WEST NORFOLK PROPERTY LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and management override of systems and control.

 

WEST NORFOLK PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WEST NORFOLK PROPERTY LIMITED
- 5 -

We also obtained an understanding of the applicable laws and regulations that the company has to abide by, through discussions with management and those charged with governance, as well as commercial knowledge of the sector and statutory legislation. We paid particular focus to those laws and regulations that had the potential to materially impact the amounts and disclosures within the financial statements.

 

After our initial risk assessment, we performed the following procedures to detect material misstatements in respect of irregularities arising due to fraud or error:

 

All audit team members were made aware of the applicable laws and regulations, as well as potential fraud risks during the planning stage of the audit and this was discussed at the audit team planning meeting. It was therefore determined that team members all had the relevant awareness and competence to identify any instances of non-compliance with relevant laws and regulations or fraud.

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.”

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s member, those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member, for our audit work, for this report, or for the opinions we have formed.

Zoe Plowman (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
20 March 2024
Chartered Accountants
Statutory Auditor
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
WEST NORFOLK PROPERTY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2023
2022
Notes
£
£
Revenue
2
369,746
265,954
Cost of sales
(351,050)
(216,080)
Gross profit
18,696
49,874
Administrative expenses
(32,324)
(74,808)
Operating loss
3
(13,628)
(24,934)
Finance costs
5
(36,017)
(27,297)
Other gains and losses
6
299,254
(139,121)
Profit/(loss) before taxation
249,609
(191,352)
Tax on profit/(loss)
7
(110,798)
6,736
Profit/(loss) and total comprehensive income for the financial year
16
138,811
(184,616)

The income statement has been prepared on the basis that all operations are continuing operations.

WEST NORFOLK PROPERTY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 7 -
2023
2022
Notes
£
£
£
£
Non-current assets
Investment property
8
912,529
363,647
Current assets
Trade and other receivables
9
10,239
14,299
Cash and cash equivalents
201,852
125,751
212,091
140,050
Current liabilities
10
(569,217)
(341,754)
Net current liabilities
(357,126)
(201,704)
Total assets less current liabilities
555,403
161,943
Non-current liabilities
10
(457,712)
(313,861)
Provisions for liabilities
Deferred tax liabilities
13
(110,798)
-
0
Net liabilities
(13,107)
(151,918)
Equity
Called up share capital
15
100
100
Retained earnings
16
(13,207)
(152,018)
Total equity
(13,107)
(151,918)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 15 March 2024 and are signed on its behalf by:
D Hall
Director
Company registration number 11305604 (England and Wales)
WEST NORFOLK PROPERTY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2021
100
32,598
32,698
Year ended 31 March 2022:
Loss and total comprehensive income
-
(184,616)
(184,616)
Balance at 31 March 2022
100
(152,018)
(151,918)
Year ended 31 March 2023:
Profit and total comprehensive income
-
138,811
138,811
Balance at 31 March 2023
100
(13,207)
(13,107)
WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
1
Accounting policies
Company information

West Norfolk Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is King's Court, Chapel Street, King's Lynn, PE30 1EX. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Borough Council of King's Lynn and West Norfolk. The group accounts are available to the public and can be obtained from https://www.west-norfolk.gov.uk/.

1.2
Going concern

The Directors of the Company and Borough Council of Kings Lynn & West Norfolk, being the shareholder, believe that the Company is well-placed to manage its business risks successfully.true

 

The Directors believe the Company has adequate resources to continue in operational existence for the foreseeable future and due to the ongoing support of the Borough Council of Kings Lynn & West Norfolk, being a period of at least 12 months from the date of approval of these financial statements. The Directors therefore continue to adopt the going concern basis in preparing the annual report and financial statements.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 10 -
1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

The company has one revenue stream, being the rental of residential properties. The rental of these properties has been identified as a single performance obligation and rental income is recognised over-time on a straight-line basis over the lease term. The transaction price is set out within the rental agreements between the company and the tenant, and there is no variable consideration in these agreements.

1.4
Investment property

Investment property, which is property held to earn rentals and for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 11 -
1.7
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

 

The company does not hold any financial liabilities at fair value through profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.10
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently measured at fair value, as the assets are held as investment properties. Any gains or losses resulting from revaluation are recognised in the Statement of Comprehensive Income in the period in which they arise.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

 

When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the company applies IFRS 15 to allocate the consideration in the contract. When the company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the right-of-use asset arising from the head lease instead of the underlying asset.

2
Revenue
2023
2022
£
£
Revenue analysed by class of business
Rental income
369,746
265,954

All revenue has been generated within the United Kingdom.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
3
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,750
10,201
Depreciation of investment property
222,706
163,400
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
4
5
5
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
36,017
27,297
6
Other gains and losses
2023
2022
£
£
Changes in the fair value of investment properties
299,254
(139,121)
7
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of temporary differences
110,798
(6,736)
WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Taxation
(Continued)
- 14 -

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2023
2022
£
£
Profit/(loss) before taxation
249,609
(191,352)
Expected tax charge/(credit) based on a corporation tax rate of 19.00% (2022: 19.00%)
47,426
(36,357)
Gains not taxable
(56,858)
-
Unutilised tax losses carried forward
-
0
9,924
Movements in deferred tax
(28,838)
(6,736)
Movements in fair value of investment property
115,556
26,433
Effect of change in tax rate - deferred taxation
33,512
-
Taxation charge/(credit) for the year
110,798
(6,736)
8
Investment property
2023
£
Fair value
At 1 April 2022
363,647
Additions through acquisition
472,334
Fair value adjustment
299,254
At 31 March 2023
1,135,235
Accumulated depreciation
Charge for the year
222,706
At 31 March 2023
222,706
Carrying value
At 31 March 2023
912,529
At 31 March 2022
363,647

Investment property comprises of 45 residential properties which are held for letting by the Company as right-of-use assets.

 

The fair value of leasehold investment properties has been estimated by the Directors based upon the discounted present value of future expected income from these properties as the company has no entitlement to any capital appreciation in respect of these assets.

 

Direct operating expenses arising from investment properties generating rental income in the period totalled £128,344 (2022: £52,680). These expenses comprise of letting fees and insurance costs.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
9
Trade and other receivables
2023
2022
£
£
Trade receivables
4,421
-
Unpaid share capital
100
100
Corporation tax recoverable
201
201
Other receivables
-
2,416
Prepayments and accrued income
5,517
11,582
10,239
14,299
10
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
11
280,560
167,125
-
0
-
0
Lease liabilities
12
278,764
163,796
457,712
313,861
Deferred income
14
9,893
10,833
-
0
-
0
569,217
341,754
457,712
313,861
11
Trade and other payables
2023
2022
£
£
Amount owed to parent undertaking
264,390
141,775
Accruals and deferred income
16,170
25,350
280,560
167,125
12
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
319,021
183,960
In two to five years
497,654
330,703
Total undiscounted liabilities
816,675
514,663
Future finance charges and other adjustments
(80,199)
(37,006)
Lease liabilities in the financial statements
736,476
477,657
WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Lease liabilities
(Continued)
- 16 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
278,764
163,796
Non-current liabilities
457,712
313,861
736,476
477,657
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
36,017
27,297
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Tax losses
Investment property
Total
£
£
£
Liability at 1 April 2021
-
0
6,736
6,736
Deferred tax movements in prior year
Charge/(credit) to profit or loss
-
(6,736)
(6,736)
Liability at 1 April 2022
-
-
-
0
Deferred tax movements in current year
Charge/(credit) to profit or loss
(25,469)
136,267
110,798
Liability at 31 March 2023
(25,469)
136,267
110,798

It was announced in the UK Government's Budget on 3 March 2021 that the main UK corporation tax rate will increase to 25 % from 1 April 2023. This change had not been enacted until after the reporting period, being the 24 May 2021.

As a result, existing temporary differences on which deferred tax has been provided may unwind in periods subject to the 19%/25% rate.

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
14
Deferred revenue
2023
2022
£
£
Arising from rental income
9,893
10,833
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary Shares of £1 each
100
100
100
100
Issued and not fully paid
Ordinary Shares of £1 each
100
100
100
100
16
Retained earnings

Retained earnings consists of accumulated profits and losses generated by the company, offset by dividends paid to shareholders.

17
Other leasing information
Lessor

The residential properties being let by the company are rented from the Borough Council and Kings Lynn and West Norfolk, which is considered to be the head lease. The head lease is accounted for under IFRS 16, with the properties being recognised as right-of-use assets and the lease payments as a corresponding lease liability. Total cash outflows for the head lease paid to the Borough Council of Kings Lynn and West Norfolk in the year was £249,532 (2022: 182,883).

 

The properties are then sublet by the company to individual tenants over standard terms of 3 years, with fixed rental payments for the same period. The total amount of rental income recognised from subletting the right-of-use assets is £369,747 (2022: £265,954). The company is responsible for insuring the properties, and bears the risk of repairs and maintenance costs.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
368,130
271,571
Information relating to lease liabilities is included in note 12.
18
Events after the reporting date

After the year end, the company has entered into 30 additional contracts with it's parent company for the leasing of properties, these have all been sub-let to individual tenants. Expected cash flow payments for the leasing of the properties totals £973,896 over four years. At inception, the present value of the contracts will be brought in to the Statement of Financial Position as a lease liability and corresponding right-of-use asset

WEST NORFOLK PROPERTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
19
Controlling party

The parent and ultimate controlling party of the company is the Borough Council of King's Lynn and West Norfolk and its registered office is King's Court, Chapel St, King's Lynn PE30 1EX.

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